Markets & Finance

Southern Financial Jumps

Southern Financial (SFFB) agreed to be acquired by Provident Bankshares (PBKS) in a deal valued at about $330 million. Terms: 1.0875 Provident shares, and $11.125 cash per Southern Financial share.

First Health (FHCC) inked a long-term deal to provide national PPO network to Health Net's group health commercial health plan PPO members and Administrative Service Only members. S&P keeps hold. Banc of America cut its estimates and target, saying First Health is presumably losing business to UnitedHealth and Aetna.

ThinkEquity upgraded Siebel Systems (SEBL) to buy from overweight.

Sovereign Bancorp (SOV) is higher on a published report that it rejected a $25 per share buyout bid from Royal Bank of Scotland, and is holding out for a better deal. S&P raised the price target, but downgraded to accumulate from buy.

The Federal Communications Commission said it would fine AT&T (T) $780,000 for apparent violations of the federal do-not-call rules, the first enforcement actions for the telemarketing registry set up by the Federal Trade Commission.

Kellogg (K) posted third-quarter net earnings of 56 cents a share, up from 49 cents and above analysts' average forecast of 52 cents a share. Revenue rose 6.8% to $2.28 billion. The consumer foods company adjusted its full-year 2003 earnings forecast to $1.89 to $1.91 a share from $1.88 to $1.90, and sees $2.05 to $2.09 earnings per share in 2004.

Dr. Reddy's Labs (RDY) says the FDA has approved its new drug application for AmVaz, a treatment for hypertension.

Marsh & McLennan (MMC) named Charles E. Haldeman, president and CEO of its Putnam Investments LLC unit. Halderman replaces Lawrence Lasser, who was removed amid the scandal over improper trading of fund shares. The company also appointed Steven Spiegel as Putnam's vice chairman, a new position. The changes are effective immediately.

FootStar (FTS) says it will not release financial restatements for the five-year period by October 31. The footwear retailer now expects a restatement will reduce earnings by $51 million to $55 million before a minority interest and taxes, vs. the previously announced $48 million to $53 million. S&P keeps accumulate.